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From a Farm Boy to a Commercial Farmer: the Case of Keith Middleton

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From a Farm Boy to a Commercial Farmer: the Case of Keith Middleton ISSUE 6 Sep 2016 RENEUR From a farm boy to a commercial farmer: the Case of Keith Middleton Rise of black livestock traders Jozini Auction nets R1.9 million AGRIPRENEUR | 1 THE AGRIPRENEUR QUARTERLY: A PUBLICATION BY THE SMALLHOLDER UNIT OF THE NAMC PREFACE This is the sixth publication of the Agripreneur edition from the National Agricultural Marketing Council (NAMC). The Agripreneur aims to communicate business-related information among smallholder farmers. Agriculture is a business and therefore this edition was designed to share information on business development and to inform farmers on the dynamics of the farm business in hope of improving entrepreneurship skills of the farmers. In addition, smallholder farmers face several challenges in their business environment, which negatively affect the marketing of their commodities. Through this publication, the NAMC seeks to create a platform where farmers, particularly smallholders share their knowledge and skills, challenges, experiences, and insights with each other. It is believed that this publication will assist smallholders to learn from each other, develop strategies, adopt models, and become part of the value chain by marketing commodities that meet quality standards and are safe for consumption. Presented in Agripreneur 6 are the following topics: (1) From a farm boy to a commercial farmer: the Case of Keith Middleton of Agrifuture and Middleton Farming Business (2) Eastern Cape Communal Wool Growers Association doing it! The Region 20’s 19th Congress (3) Rise of black livestock traders: Jozini Auction nets R1.9 million (4) Konsortium-Merino: another initiative towards the success of the land reform programme? List of contributors: Stephen Monamodi Elekanyani Nekhavhambe Thulisile Khoza Kayalethu Sotsha Edited by Kayalethu Sotsha For more information on the Agripreneur Publication, contact Prof Victor Mmbengwa, Manager: Smallholder Market Access Research at NAMC. 2 | AGRIPRENEUR CONTENTS From a Farm boy to a Commercial 4 Farmer Eastern Cape Communal Wool Growers 9 Association doing it! Rise of Black Livestock traders Jozini 10 Auction Konsortium-Merino 13 From a farm boy to a commercial farmer: the Case of Keith Middleton Keith with his wife Jacqui Agrifuture and Middleton Farming Business By Kayalethu Sotsha and Elekanyani Nekhavhambe Agrifuture and Middleton Farming Business Mr Middleton grew up in a farm and he was very owns a 1 200 hectares farm in Kimberley, which passionate about learning the farm activities from was acquired under the Land Redistribution for his father, from field to mechanical activities. Agricultural Development (LRAD) programme. However, he left the farm and went to work for an Keith runs the farm business. He is a very IT company for some time leading to his venture passionate black businessperson and an back to farming. He started as a shareholder enterprising man. He has a die-hard spirit and having a share of 20% of a commercial dairy farm quite determined to build his farm business. He in Kimberley in 2007. The owner of the farm had has a vision to help his fellow black farmers to grow some financial challenges and resorted to selling too. He says he would love to see the land reform the farm. Mr Middleton raised up his hand in a bid programme working and he would like to be part to purchase the farm. of its success. This he aims to achieve through his networks he has built with white commercial This proved to be a test of character as Mr farmers that allow him to influence attitudes of Middleton had one and a half months to submit farmers (both black and white). Mr Middleton has a guarantee of funding or else the farm would be built a strong relationship with white commercial auctioned. At that stage he decided to focus entirely farmers over the years, yet he has never forgotten on getting the farm, therefore he resigned from which side of the fence he is on. his IT job. He then approached the Department of Rural Development and Land Reform (DRDLR) 4 | AGRIPRENEUR in Bloemfontein to request that the department On Agrifuture and Middleton farming assists him in attaining the farm. “It was not business easy”, he said. He had a series of meetings with the department pushing for the success of his dream of owning a commercial farm. He said, “I knew everybody at the department at the time”, and this was due to frequent visits to the department. Unfortunately, things did not go according to his wishes because his request was a short notice to the department, so he could not be able to hand in the guarantee in a space of one and a half month as required. The farm was then set to be auctioned on the second week of February in 2008. Although it would have seemed as a losing The two partners started operating soon after battle, Mr Middleton kept pushing his agenda with they secured the ownership of the farm. They DRDLR. He finally had his application approved switched from dairy farming into crops and a few days before the auction. Therefore, he vegetables production. However, Mr Middleton succeeded in securing the ownership of the felt that he had little to nothing to contribute in farm under the LRAD programme, but it was on terms of decision making on the operation of a 50/50 shareholding with one of the previous the farm. This frustrated him to an extent that he shareholders of the farm (a white man). suffered some physical illnesses that had him AGRIPRENEUR | 5 staying away from the farm for about three to hectare farm, of which 300 hectares is under four months. While he was away, he thought and irrigation. He is doing crop rotation with lucerne, realized that he had fought so much in securing maize, barley, wheat and potatoes. However, the farm and therefore he could not afford to be his major enterprise is lucerne. Mr Middleton is sidelined. He took a decision to go back and diversifying his business activities. He also farms fight for the full ownership of the farm, which he with sheep, and he currently has a stock of 300 succeeded. ewes and a number of lambs. These are mainly for wool production. He also has some stock that He points out that the farm business suffered a is mainly for family meat consumption. He has setback after his partner left, because he had a tried farming with Limousine cattle. However, this wider network and was the major contributor in venture was not successful because limousines terms of skill, expertise, and sourcing assistance had a tendency of breaking the fence and intrude from fellow farmers (including machinery). into the neighbouring farmers’ property. In Therefore, he left with all of these valuable assets. addition, they were heavy on the pasture. He has Mr Middleton was facing financial challenges not given up though; he is planning to introduce and he was forced to reduce his operation by Bonsmara for meat production. When asked leasing out some of his land and equipment. To about his plans for the dairy facility that is on the an extent, he was rescued by the Department of farm, he said he plans to sell the facility because Rural Development and Land Reform’s Recap dairy is not one of his preferred enterprises. In programme in 2011. After Recap, he was able to his endeavour to diversify, Mr Middleton is busy restore some of the leased land and equipment putting up a fence on a non-arable piece of land and he began to expand his farm bit by bit each on the farm for game farming (the intention is to year. utilize his land as optimally as possible). Mr Middleton is currently farming on a 1200 His inspiration is the farmers around him. He It was not “ easy 6 | AGRIPRENEUR Merino sheep indicated that his neighbouring farmers are bigger in scale of production, well equipped with machinery and implements, and well vest with farming expertise. He claims that he has learnt a lot from these farmers, and has built a very good relationship with them. In his words he said “at first I would go and stand next to these guys fence and tell them, do not mind me continue with your work, I just came here to steal with the eyes”. The farmers he was stealing from used to be irritated and annoyed by his actions, which would result to some harsh exchange of words. Cloetes’ Lucerne storeroom One of the farmers referred to here are the Cloetes, He emphasized that one of the most important led by John “Johnny” Cloete. The Cloetes are big things the emerging black farmers must do is to on scale and he calls them “lucerne masters”. The build good relationships with white commercial Cloetes plant lucerne on 1000 hectares of land, have farmers and take care of own farm labour. This equipment to cut and bail, have trucks to transport strategy has proven to work very well based on his it to the market. In many cases, the Cloetes would experience. He now asks some of his neighbouring come to his farm to cut and bail his lucerne and he farmers to assist him with some of the activities, pays them for the work. They also come to bail his such as cutting and bailing lucerne to keep up with maize stock and pay him R20 per bail, because he timing of planting when he has to put in another burns the stock before putting lucerne again. The crop. He says his strategy of planting a winter crop reason he does not do the same is that he does not after harvesting a summer one requires a good deal have enough equipment, so it would take him two of timing for good yields.
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